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RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES

12 Months Ended

Dec. 31, 2025

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES

(12) RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES

The Company recorded restructuring and related expense aggregating $19.7 million, $10.2 million and $16.2 million in the years ended December 31, 2025, 2024 and 2023, respectively. Restructuring and related expense includes restructuring expense (primarily severance and related costs), estimated future variable and other lease costs for vacated properties with no intent or ability of sublease, and accelerated rent amortization expense.

For restructuring events that involve lease assets and liabilities, the Company applies lease reassessment and modification guidance and evaluates the right-of-use assets for potential impairment. If the Company plans to exit all or distinct portions of a facility and does not have the ability or intent to sublease, the Company will accelerate the amortization of each of those lease components through the vacate date. The accelerated amortization is recorded as a component of Restructuring and related expense in the Company’s consolidated statements of operations. Related variable lease expenses will continue to be expensed as incurred through the vacate date, at which time the Company will reassess the liability balance to ensure it appropriately reflects the remaining liability associated with the premises and record a liability for the estimated future variable lease costs.

Accelerated amortization of lease assets is recognized from the date that the Company commences the plan to fully or partially vacate a facility, for which there is no intent or ability to enter into a sublease, through the final vacate date (see Note 21). The Company may incur additional future expense if it is unable to sublease other locations included in the Facilities Initiative.

The components of restructuring and related expense for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):


		Year ended December 31,
		2025			2024			2023
Severance and related costs		$	13,666		$	4,036		$	9,875
Variable and other facilities-related costs			5,992			6,124			5,326
Accelerated amortization of lease assets due to cease-use			—			—			1,008
		$	19,658		$	10,160		$	16,209

The following table presents the rollforward of accrued restructuring liabilities for the Company’s restructuring plans for the years ended December 31, 2025, 2024 and 2023 (in thousands):


	2022 and Prior			2023			2024			2025			2026
		Restructuring			Restructuring			Restructuring			Restructuring			Restructuring
	Plans			Plan			Plan			Plan			Plan			Total
Balances, December 31, 2022	$	3,358		$	—		$	—		$	—		$	—		$	3,358
Charged to expense		6,334			9,875			—			—			—			16,209
Transfer to operating lease assets		(1,008)			—			—			—			—			(1,008)
Payments		(7,164)			(9,204)			—			—			—			(16,368)
Balances, December 31, 2023		1,520			671			—			—			—			2,191
Charged to expense		6,123			2,003			2,090			—			—			10,216
Reversals/adjustments		(56)			—			—			—			—			(56)
Payments		(6,472)			(2,589)			(1,091)			—			—			(10,152)
Balances, December 31, 2024		1,115			85			999			—			—			2,199
Charged to expense		5,992			70			99			5,188			8,640			19,989
Reversals/adjustments		—			90			(319)			(102)			—			(331)
Payments		(6,301)			(245)			(779)			(4,464)			(179)			(11,968)
Balances, December 31, 2025	$	806		$	—		$	—		$	622		$	8,461		$	9,889

2026 Restructuring Plan

During the fourth quarter of 2025, the Company’s President and CEO approved a strategic restructuring program (the "2026 Restructuring Plan") that consists of workforce reductions in certain of the Company’s operating locations to correspond with current sales levels in those areas. In connection with the 2026 Restructuring Plan, the Company recorded restructuring and related expense of $8.6 million, with cash payments of $0.2 million in the year ended December 31, 2025. The Company estimates that it will expense approximately $5 million in 2026 under the 2026 Restructuring Plan.

2025 Restructuring Plan

During the first quarter of 2025, the Company’s President and CEO approved a strategic restructuring program (as subsequently amended, the "2025 Restructuring Plan") that consists of workforce reductions in certain of the Company’s operating locations to correspond with current sales levels in those areas. The 2025 Restructuring Plan was amended in the third quarter of 2025 to reflect an increase in the scope of the proposed reductions. Any potential positions eliminated in countries outside the United States are subject to local law and consultation requirements. In connection with the 2025 Restructuring Plan, the Company recorded restructuring and related expense of $5.0 million, with cash payments of $4.5 million in the year ended December 31, 2025.

2024 Restructuring Plan

The Company’s President and CEO approved workforce reductions in 2024 for certain of the Company’s operating locations to correspond with the current sales levels in those areas. The Company recorded a nominal amount in the year ended December 31, 2025 and $2.1 million in the year ended December 31, 2024 related to these actions.

2023 Restructuring Plan

On February 22, 2023, the Company’s Board of Directors approved a strategic restructuring program (the “2023 Restructuring Plan”) to streamline the Company’s operations in order to support the Company’s investment in critical growth areas. The 2023 Restructuring Plan includes, among other things, charges related to a workforce reduction. Any positions eliminated in countries outside the United States were subject to local law and consultation requirements.

In connection with the 2023 Restructuring Plan, the Company recorded restructuring and related expense of $0.2 million and $2.0 million in the years ended December 31, 2025 and 2024, respectively, consisting entirely for severance related costs.

2022 and Prior Restructuring Plans

Prior to December 31, 2022, the Company engaged in various restructuring activities that included consolidation of facilities and workforce reductions. Substantially all the ongoing costs incurred under such plans in the years presented relates to variable and other facilities-related costs. The Company estimates that it will expense approximately $3 million in 2026 under these restructuring plans.

Balance Sheet Classification

The current portions of accrued restructuring were $9.4 million and $1.4 million at December 31, 2025 and 2024, respectively, and are included as components of Accrued expenses in the consolidated balance sheets. The long-term portions of accrued restructuring are included as components of Other long-term liabilities in the consolidated balance sheets. The long-term portions of accrued restructuring were $0.5 million and $0.8 million at December 31, 2025 and 2024, respectively.